Narrative
Full Description
Project narrative
On December 19, 2019, a syndicate of 15 banks — including and Bank of China (Luxembourg) S.A. Spółka Akcyjna Oddział w Polsce (BOC Luxembourg)) (Poland Branch) and Industrial and Commercial Bank of China (Europe) S.A. (Spółka Akcyjna) Oddział w Polsce (ICBC (Europe)) (Poland Branch) — entered into a $1.500 billion USD (zł5.742 billion PLN) syndicated revolving credit facility (RCF) agreement with KGHM Polska Miedź S.A. — a Polish multinational mining corporation and world leading producer of copper and silver headquartered in Lubin, Lower Silesia, Poland listed on the Warsaw Stock Exchange with the State Treasury of the Republic of Poland as the largest shareholder (31.79% share capital) — for refinancing and general corporate purposes. The facility carried a maturity period of five years and a final maturity date of December 19, 2024, albeit with two one-year extension options exercisable at the request of KGHM Polska Miedź S.A., but at the discretion of each syndicate member, and an interest rate based on LIBOR plus a margin dependent on the borrower's net debt to earnings before interest, taxes, depreciation and amortization (EBITDA) financial ratio. The RCF could be drawn in up to 30 renewable tranches. The facility was unsecured. The proceeds were to be used by the borrower to replace (refinance) its current $2.500 billion USD syndicated RCF dated July 11, 2014, which the borrower would then terminate, and to finance the borrower's general corporate purposes. Record ID#108949 captures BOC Luxembourg's contribution. Record ID#108950 captures ICBC (Europe)'s contribution. In addition to the two Chinese state-owned banks, the following lenders contributed to the loan syndicate: Bank Polska Kasa Opieki S.A., Intesa Sanpaolo S.p.A. Spółka Akcyjna Oddział w Polsce, Banco Santander, S.A., Santander Bank Polska S.A., Powszechna Kasa Oszczędności Bank Polski S.A. (PKOP), BNP Paribas Bank Polska S.A., Bank Millennium S.A., Credit Agricole Bank Polska S.A., Erste Group Bank AG, SMBC Bank EU AG, Bank Handlowy w Warszawie S.A. (BHW), Société Générale Spółka Akcyjna Oddział w Polsce (SocGen), and ING Bank Śląski S.A.. As of December 31, 2019, zł18 million PLN, including accrued interest and fees, was drawn. Then, in December 2020, all but one of the members the lending syndicate — still including BOC Luxembourg and ICBC (Europe) — entered into an amendment agreement with KGHM Polska Miedź for the $1.5 billion USD RCF; in the amendment, the maturity period of $1.438 billion USD of the facility was extended by one year — for a new maturity period of six years — for a new maturity date of December 20, 2025. Record ID#108951 captures BOC Luxembourg's contribution to the debt rescheduling. Record ID#108953 captures ICBC (Europe)'s contribution to the debt rescheduling. As of December 31, 2020, zł17 million PLN was drawn. Then, on or around December 2, 2021, all but one of the members the lending syndicate — still including BOC Luxembourg and ICBC (Europe) — entered into an amendment agreement with KGHM Polska Miedź for the $1.5 billion USD RCF; in the amendment, the maturity period of $1.438 billion USD of the facility was extended by one year — for a new maturity period of seven years — for a new maturity date of December 20, 2026. Record ID#108954 captures BOC Luxembourg's contribution to the debt rescheduling. Record ID#108955 captures ICBC (Europe)'s contribution to the debt rescheduling. As of December 31, 2021, zł14 million PLN was drawn. As of December 31, 2022, zł528 million PLN was drawn. As of December 31, 2023, there was no outstanding balance. As of December 31, 2024, there was no outstanding balance.
Staff comments
1. The individual contributions of the 15 lenders to this $1.500 billion USD syndicated facility are unknown. For the time being, AidData has estimated BOC Luxembourg and ICBC (Europe)'s contributions by assuming each lender contributed equally ($100,000,000 USD) to the loan syndicate. 2. KGHM Polska Miedź S.A. is a Polish multinational mining corporation headquartered in Lubin, Lower Silesia. It was founded as a state enterprise in 1961 before being listed on the Warsaw Stock Exchange in 1997. It employed around 34,000 people worldwide and operated nine open-pit and underground mines in Poland, Canada, the United States and Chile. KGHM produces key global resources including copper, copper sulphate, gold, silver, nickel, nickel sulphate, molybdenum, rhenium, lead, sulphuric acid, selenium, platinum group metals. 3. AidData assumes, as there were 14 lenders extended of the original 15, that both of BOC Luxembourg and ICBC (Europe) extended in the absence of the specific list, as at least one of them most have and both of them doing so has high probability.